Question

A bank is offering a loan to account holders. If they pay the full amount off in fourteen months, they are charged no interest. Denise needs a $6,500 loan to get a new car. In order for her to avoid the interest charge, how much will she have to pay back each month?

Answer 1

Denise would have to pay $464.29 each month to avoid the interest charge on her $6,500 loan.

Step-by-step explanation:

In order for Denise to avoid the interest charge and pay off the $6,500 loan in fourteen months, she would need to make equal monthly payments. To calculate the monthly payment, we divide the total loan amount by the number of months: $6,500 / 14 = $464.29.